The National Asset Reconstruction Company Limited (NARCL) witnessed a pivotal change in leadership as P Santhosh, the Chief General Manager at Canara Bank, stepped into the role of Managing Director effective January 5. This significant appointment came in the wake of Natarajan Sundar’s resignation from the post of MD and CEO of NARCL, leaving many within the industry curious about the new leader’s background and potential impact.
P Santhosh, a seasoned banking professional, brings a wealth of experience to his new role. Before assuming this position, Santhosh served in a high-ranking capacity at Canara Bank, demonstrating exceptional leadership skills and a deep understanding of the banking sector. His deputation from Canara Bank to take charge at NARCL speaks volumes about his expertise and capabilities in navigating complex financial landscapes.
The sudden change in leadership at NARCL has raised eyebrows, especially considering that Natarajan Sundar is the second top official to resign before completing the designated tenure. Moreover, Karnam Sekar, the former Chairman, also departed from his role before the completion of his term, making this transition in leadership even more intriguing.
Sundar, a distinguished banking veteran who ascended to the rank of Deputy Managing Director at State Bank of India, was appointed as MD of NARCL on May 30, 2022, for a two-year term. However, his resignation marked an unexpected turn, mirroring Karnam Sekar’s earlier departure without providing explicit reasons for stepping down.
The backdrop against which these changes unfolded involves a proposed merger between NARCL and India Debt Resolution Company Limited (IDRCL), an entity acting as an agent in the resolution of bad loans. The merger suggestion emerged during Diwakar Gupta’s tenure as head of IDRCL, eventually leading to his appointment as Chairman of NARCL. Narayan Sheshadri also joined as a chairman following these transitions.
The strategic importance of NARCL as the primary asset reconstruction company dealing with the acquisition of bad loans is underscored by the transfer of substantial bad loans by ten public sector banks. As of November 30, 2023, NARCL had managed to recover Rs 16.64 crore from these loans, showcasing its ongoing efforts in the realm of debt resolution and asset reconstruction.
Santhosh’s appointment marks a new chapter for NARCL, and the company is expected to soon initiate the process of inviting candidates to apply for the vacated position, indicating its commitment to ensuring strong leadership and governance.
The industry eagerly anticipates Santhosh’s vision and strategies in leading NARCL through its mission of tackling bad loans and contributing to the resolution of financial distress within the sector. As the new Managing Director, Santhosh’s expertise and leadership will be closely watched by stakeholders within the financial landscape.